Broadcom (AVGO) Is Up 7.4% After Massive Buybacks And AI Chip Deals With Hyperscalers - Has The Bull Case Changed?
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Broadcom (AVGO) Is Up 7.4% After Massive Buybacks And AI Chip Deals With Hyperscalers - Has The Bull Case Changed? Sasha Jovanovic Tue, September 22, 2026 at 10:13 PM EDT 3 min read AVGO In the past few weeks, Broadcom reported that it completed a multi-year share repurchase program totaling 41,000,000 shares for about US$10.93 billion, alongside launching a fixed-income exchange offer for its US$654.00 million 4.926% Notes due 2037. At the same time, management highlighted that AI semiconductors now generate more than half of Broadcom's sales, supported by long-term commitments from hyperscale customers such as Anthropic, Alphabet, and Meta. We'll now examine how Broadcom's deepening AI chip commitments, especially with Anthropic as a major custom silicon customer, shape its investment narrative. The future of work is here. Discover the 95 top robotics and automation stocks leading the charge in AI-driven automation and industrial transformation. To own Broadcom, you need to believe its AI semiconductor engine, now over half of sales, can offset softer legacy chip markets and the execution risk of integrating VMware. The completed US$10.93 billion buyback and the 2037 note exchange offer do not materially change that near term. The key near term catalyst remains sustained AI orders from hyperscalers like Anthropic, Alphabet, and Meta, while the biggest risk is how concentrated that AI demand is among a few customers. The most relevant update here is Broadcom's completion of the 41,000,000 share repurchase under its 2025 authorization for about US$10.93 billion. That sits alongside multi year AI commitments, including Anthropic emerging as Broadcom's largest custom silicon customer, and reinforces the story of using substantial free cash flow to support per share metrics while leaning heavily into AI accelerators and networking as the main growth drivers. Yet while AI demand looks strong today, investors should be aware that customer concentration in a handful of hyperscalers means... Read the full narrative on Broadcom (it's free!) Broadcom's narrative projects $243.8 billion revenue and $120.9 billion earnings by 2029. This requires 47.8% yearly revenue growth and a $91.6 billion earnings increase from $29.3 billion today. Uncover how Broadcom's forecasts yield a $523.73 fair value , a 44% upside to its current price. Some of the lowest analysts were already cautious, assuming Broadcom's revenue might grow about 27 percent annually to roughly US$183 billion by 2029, and the latest AI focused news could either ease their worries about customer concentration or deepen them if you think hyperscaler spending cools more quickly than expected. Explore 18 other fair value estimates on Broadcom - why the stock might be worth just $369.88! Disagree with existing narratives? Extraordinary investment returns rarely come from following the herd, so go with your instincts. A great starting point for your Broadcom research is our analysis highlighting 4 key rewards and 1 important warning sign that could impact your investment decision. Our free Broadcom research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Broadcom's overall financial health at a glance. Don't miss your shot at the next 10-bagger. Our latest stock picks just dropped: We've uncovered the 7 dividend fortresses yielding 5%+ that don't just survive market storms, but thrive in them. Uncover the next big thing with 9 elite penny stocks that balance risk and reward. Rare earth metals are an input to most high-tech devices, military and defence systems and electric vehicles. The global race is on to secure supply of these critical minerals. Beat the pack to uncover the 35 best rare earth metal stocks of the very few that mine this essential strategic resource. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include AVGO . Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com
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